So far, I've been using the BP calculators to analyze single family homes. Recently ran across a multi building, multifamily package deal that promises a great return (by the realtor) to an investor. It's made up of triplexes, 4-plexes, and apartments. Total 42 doors.
My question: What, if anything, is different when analyzing multifamily projects than single family homes.
Thanks for your input, any guidance is greatly appreciated.
Read Multifamily Millions by David Lindahl and follow his methodology of repositioning a value play. I have been following his strategy for the 8 apartment complexes I currently hold for 122 front doors.
Looked for the book on Audible, BP Store and my library. Found it on Amazon and ordered it. Also did a BP search and found a complete outline of the book by BP Pro member Ernesto Hernandez. He also recommends it.
Thanks for the help,
Gotta go now. Podcast #238 is queueing up.
I second that book recommened by @Michael Swan . I just finished reading it, and it is fantastic. The biggest take-away from the book is the possibility to do value add plays by increasing the NOI. If you can find ways to do that by raising rents / income and/or lowering expenses, you can find hidden gems. Larger apartments are valued by the formula NOI / Cap rate. Purchase the property based on current performance (not pro forma, but actuals) and not on potential performance.
Hi Franki and Jim contact me anytime.
Will do @Michael Swan !
Contact me now!!